With global equities up more than 25% since their bottom last June, many investors are wondering: “Is it too late to move cash from the sidelines? Should I wait for a pullback?”

My answer to both questions: no, with a caveat. As I write in my latest Market Perspectives piece, while stock prices aren’t yet in a bubble, some parts of the market do look more expensive than others.

That’s why I advocate that investors, especially those just starting to dip their toes in, focus on three areas of the market that look reasonably priced.

Certain International Markets: With investors paying a big premium today for safety, the US market looks somewhat stretched compared to its international peers. As such, I’d be more hesitant to commit a lot of new capital there. Instead, I’d focus on other parts of the world where valuations are lower.

Among emerging markets, I especially like the bigger ones such as Brazil and China. Among developed markets, I like smaller ones such as Hong Kong. While these international economies aren’t without their problems, they generally look fundamentally sound and have been punished for slower-than-expected growth. Too much pessimism is reflected in their prices.

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